Positive Sentiment from Foreign Investors Continues to Support Indian Markets

Despite a mixed performance in Indian equity markets, foreign investors have continued to show positive sentiment, with Foreign Institutional Investors (FIIs) turning net buyers in recent sessions after months of persistent selling.

While the Nifty 50 and Sensex 30 posted marginal gains, the BSE Midcap and Smallcap indices struggled, ending in the negative. The Sensex and Nifty gained over 0.5% each for the week, contributing to a 6% increase for the month and a 5% rise in the financial year 2024-25.

Market volatility decreased as the India VIX dropped by 5.31%, signaling stability. Experts suggest resistance at 23,600 and 24,000, with strong support at 23,300, and a breakout above 23,800 could push the market further.

The SEBI’s recent announcement to increase the threshold for granular beneficial ownership disclosures has also encouraged foreign investors. Market participants are now awaiting potential announcements regarding US tariff policies and an anticipated rate cut by the RBI.